The Fed has decreased the money supply. The formula for calculating the resulting change in demand deposits is
a. (1/RRR) minus the change in reserves
b. (1/RRR) multiplied by the change in reserves
c. the change in reserves divided by [1 - (1/RRR)]
d. RRR minus the change in reserves
e. [1 - (1/RRR)] multiplied by the change in reserves
B
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Critics of unconventional monetary policies argue that such operations take the Fed beyond its proper powers, may politicize it, and can unleash future inflation.
Answer the following statement true (T) or false (F)
The new growth theory would be most likely to lend support for increased government support for
a. land acquisition. b. natural resource development. c. stricter environmental standards. d. higher education.
In which of the following periods did average labor productivity in the United States grow the fastest?
A. 1995 to 2008 B. 1929 to 1935 C. 1949 to 1973 D. 1973 to 1995
Since 1970, the poverty rate has
A. been low in good times and high in bad times. B. been high in good times and low in bad times. C. decreased steadily and constantly in good times and bad. D. increased steadily and constantly in good times and bad.